From The News (16 Oct. 2012): “The International Monetary Fund — criticised in the past for its strict prescription of the bitter medicine of deficit cuts — used the week to articulate a moderated position emphasising growth.

That brought its Managing Director Christine Lagarde into conflict with champions of austerity, in the person of German Finance Minister Wolfgang Schaeuble, who insisted there was “no alternative” to budget-slashing.

The dispute was the centrepiece of events in Tokyo, as they jockeyed over how strict to be on countries with runaway deficits.Lagardecaused a stir on Thursday when she said she was happy for Greece — bleeding from the spending cuts demanded by international creditors — to have two more years to meet its deficit-reduction targets. The following day, Schaeuble said there was “no alternative” to slashing bloated national balance sheets…”

Of course, the Germans, who only see profligacy abroad rather than at home, will not be satisfied until all EU sovereign debts look like theirs at 81% of GDP. But France’s is at 86% and cutting a great deal out of its national budget.

What is Schaubel doing about Germany’s debt? Pointing the finger at others …